Infrastructure

PVGrows Infrastructure Finance Project

Pioneer Valley Grows is offering new loan options and creative financing opportunities for enterprises that help bring more local food to markets and fill food system infrastructure gaps in the Pioneer Valley.

We are now looking for committed entrepreneurs whose well-researched plans provide solutions for handling, processing, or distributing local agricultural products, and improve sales for farm-related businesses. Plans can be in various stages of completion:  you do not need to have a complete business plan to receive consideration for financing.

What is the PVGrows Infrastructure Finance Project?

Small and mid-sized enterprises, particularly food-based businesses, face unique challenges in identifying suitable sources of capital. PVGrows is launching a financing project designed to provide these businesses between $10,000 and $500,000 in financing opportunities.

The PVGrows Infrastructure Finance Project is comprised of several components, currently in varying stages of development:

Western Massachusetts Enterprise Fund

WMEF is offering a pre-development loan fund - up to $50,000 per project - to provide selected businesses with the capital they need to move from feasibility into operations. Recipients pay interest only as the project moves through development, and the loans are rolled into a final financing package for enterprises that proceed to launch. Interest rates are currently 8%, but are subject to change based on Prime.

Loan Pool

PVGrows is developing a loan pool targeted at the specific needs of food systems enterprises who may not find a match with conventional bank loans. The pool will be funded and administered in partnership with WMEF, the Cooperative Fund of New England and the Franklin County Development Corporation.  Favorable loan terms are supported in part by commitments from the Lydia B. Stokes Foundation, The Frances Fund, and other philanthropic partners who share an interest in bringing capital to the local food system. Loan terms will be between 3 and 10 years, with interest rates anticipated at 7 to 10%.

Equity Fund

PVGrows plans to offer a highly competitive equity fund for interested businesses with investments ranging from $10,000 to $150,000.

Community Capital

PVGrows is exploring options to raise a community funds for the purposes of investment in food system ventures with social and environmental missions.  This model draws from national models being developed by Slow Money, RSF Social Finance and others. The goal is to provide interested community members with a means for directing some of their investment dollars into the local food system.

What is PVGrows?

For more information about PVGrows click here.

Eligibility

Eligible enterprises must be involved in agricultural activities and/or adding value to farm products grown in the Pioneer Valley region, and support the long-term viability of the local food system.

We are particularly interested in post-harvest, market-oriented activities including the processing, packing, storage, and distribution of predominantly locally grown agricultural products. Eligible entities include start-ups, established enterprises, cooperatives, and non-profits.

Timeframe

We will be reviewing potential participants on a monthly basis. Please allow one week for confirmation of receipt. Once we hear from you, we will keep you up-to-date on our services.

Get Started

Please send us a description of the enterprise, planned or existing, by answering the questions below (one paragraph each). Email pvgrows@buylocalfood.org, including your enterprise name and “Financing Inquiry” in the subject line. After initial review PVGrows may request additional materials to understand your enterprise in more detail.

  1. Describe business activities for which you may be seeking financing.
  2. Describe the enterprise history, management structure, and qualifications, including whether the activity is in start-up, growth, or mature stage.
  3. What financing options have you explored for the enterprise? What financing options are you interested in exploring further? (refer to PVGrows Finance Initiative for details)

Questions & Submission

Any questions?

Email pvgrows@buylocalfood.org or call 413-665-7100 x15 for the PVGrows Coordinator.

PVGrows Coordinator
CISA
1 Sugarloaf St.
South Deerfield, MA 01373

The submission of information in response to this announcement does not create a binding obligation of any nature on the PVGrows Working Group members or the applicant.